Residential Care Home Assessment

Residential Care Home assessment  Group E

We will use the following environmental forces to analyze the external environment of this market.

Political Factors:

Residential Care Homes are required to follow data protection laws and health and safety laws.  Employees will need to keep the personal information on residents confidential.  And any electronic files must be encrypted to prevent any loss or stolen data.   If there are breaches, employees can be found guilty under PIPEDA. 

As a Residential Care Home, we must ensure that all health and safety laws are followed in order to prevent a lawsuit.  Follow ups or small audits must be performed in order to ensure that this is being done.  If deviations are found, we must take corrective actions immediately.

Economic Factors:

Consumer income plays a huge role in this business as well as the state of the economy, such as whether it is a time of inflation or recession. This dictates the gross, disposable and discretionary income that an individual has, as well, the purchasing power of that income. Their disposable income decreases allowing them to purchase only what they need and not what they want.  Their ability to pay for their residence and services should remain the same.  However, a recession could increase business expenses such as cost of goods and increase in interest rates, which could result in higher cost of living for the residents.

With the current extremely low interest rates borrowing comes at very little cost so the new venture can benefit from borrowing from low interest loans to finance their business for capital expenditures.

Social Factors:

When determining economic factors, we will need to assess the state of the population.  Currently, the baby boomers are between the ages of 51 – 70.  They are at an age where they will need health care and/or at home care. There will be an increase in demand for Residential Care Homes.  Given the possibility of the new venture, the current situation gives a great opportunity for success. Due to the potential diversity of the residents, there should also be a focus on the values and beliefs of the particular demographic we will be targeting. Multicultural marketing techniques such as hosting community events would aid in increasing the diversity of our residents. 

Residential Care Homes require workers with special skills such as healthcare aids, nurses and possibly doctors.  However, once the baby boomers are out of the labor market, there is a prediction that there will be a shortage of workers.  It may be difficult to find qualified individuals in the future.

Technological Factors:

Technology is constantly changing and improving.  However, the cost of health care equipment can be quite expensive.  The Residential Care Home will have to keep up to date equipment and information. Technological forces may include medical breakthroughs in medications, treatments and equipment. These things would affect the needs and wants of the market. Additionally, things like easy access to the Internet, increased awareness and mobile marketing affect the way that these companies can market themselves.